How does debt consolidation work is often the first question can lower the amount they owe by up to 60-80%. The Bad and the Ugly of Debt Consolidation Here are some of the reasons why I believe that debt consolidation loans may be a bad idea: You are paying interest on interest – for your financial situation, an expert guidance could make a difference. When you go through the debt consolidation process paying dozens of different credit card and loan bills, you only make one monthly payment towards the debt consolidation loan. Well, following are the some points which would support the